Financial Calculations & Valuation Intermediate

Project Term Loan Moratorium & IDC (Interest During Construction) Schedule Generator in Python

Generate a project finance term loan repayment schedule in Python Pandas handling moratorium periods, Interest During Construction (IDC) capitalization, and stepped-up EMIs.

#pandas#numpy

Problem Statement

Industrial and infrastructure term loans include a 6 to 24 month moratorium (holiday period) before commercial operations date (COD). Modeling whether interest during moratorium is serviced monthly or capitalized into principal is critical for DSCR projections.

Formula / Core Logic

If Capitalize_IDC == True: Opening_Principal_At_Repayment = Sanctioned_Loan * (1 + r_month)^Moratorium_Months Post-Moratorium EMI is computed over remaining Repayment_Months.

Installation

pip install pandas numpy

term-loan-moratorium-interest-capitalization-schedule-python.py

import pandas as pd
import numpy as np

def generate_moratorium_loan_schedule(principal, annual_rate, moratorium_months=12, repayment_months=60, capitalize_interest=True):
    r = (annual_rate / 100.0) / 12.0
    balance = float(principal)
    rows = []
    
    for m in range(1, moratorium_months + 1):
        interest = balance * r
        if capitalize_interest:
            balance += interest
            rows.append({'Month': m, 'Phase': 'Moratorium_Cap', 'Payment': 0.0, 'Interest': round(interest, 2), 'Principal': 0.0, 'Closing_Balance': round(balance, 2)})
        else:
            rows.append({'Month': m, 'Phase': 'Moratorium_Int_Only', 'Payment': round(interest, 2), 'Interest': round(interest, 2), 'Principal': 0.0, 'Closing_Balance': round(balance, 2)})
            
    emi = balance * r * ((1 + r) ** repayment_months) / (((1 + r) ** repayment_months) - 1)
    for m in range(moratorium_months + 1, moratorium_months + repayment_months + 1):
        interest = balance * r
        prin = emi - interest
        balance = max(0.0, balance - prin)
        rows.append({'Month': m, 'Phase': 'Repayment', 'Payment': round(emi, 2), 'Interest': round(interest, 2), 'Principal': round(prin, 2), 'Closing_Balance': round(balance, 2)})
        
    return pd.DataFrame(rows)

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Frequently Asked Questions

Q: What is IDC in project finance?

Interest During Construction (IDC) is the interest accrued on term loan disbursements before the factory or project starts generating commercial revenue.